❓ Mr L'Estrange questions the Treasurer about the federal budget's impact on WA, particularly regarding GST distribution. The Treasurer highlights a significant decline in WA's GST revenue share compared to other states, presenting a chart illustrating the disparity.
AnsweredQoN 122Legislative Assembly
QuestionView source ↗
GOODS AND SERVICES TAX DISTRIBUTION
122. Mr S.K. L'ESTRANGE to the Treasurer:
Can the Treasurer please advise the house whether there is
any good news in the federal budget for Western Australia, especially in
relation to the GST?
122. Mr S.K. L'ESTRANGE to the Treasurer:
Can the Treasurer please advise the house whether there is
any good news in the federal budget for Western Australia, especially in
relation to the GST?
AnswerView source ↗
This could easily be —
Mrs
M.H. Roberts : You got the wrong question!
Mr
T.R. BUSWELL : No. It is not the wrong question at all. It is exactly the
right question. In fact it could be the shortest answer I would ever give. But
I feel I should explain just a bit. The bit I look to when the federal budget
is handed down and when I strip through the fanfare and the glitz and all the
excitement, is the GST funding that flows to our state and importantly to other
states. The news, member —
Mr
P. Papalia : Do you really want to stick with that?
Mr
T.R. BUSWELL : I do, and that is exactly what I do and it is what everybody
in this place should do. I will explain why it is important, member for
Churchlands. If we look at total amounts of money that will flow to the state,
we are being decimated in terms of flows of GST revenues. When we look at our
relativities compared with the rest of Australia, we are being decimated in
terms of GST revenues. I have a chart. It is not laminated like the Leader of
the Opposition's chart; we are in austerity mode in government. I want
to show members this chart, because it highlights a very, very important point.
I am comparing here six years from 2011–12 through to 2016–17.
The chart has blue lines and red lines. The blue lines are the total amounts
that flow to the state of Western Australia. The red lines—I thought I
would choose a state similar in size and population and activity!—represent
the Northern Territory. I should point out to the house that this chart is
based on Treasury's analysis of the figures provided by the
commonwealth in the budget last night, because Treasury historically is much
more accurate in forecasting what happens to GST flows in an absolute sense and
to revenues. What this chart shows is that over the six years of this period,
Western Australia's GST—the blue bar—will drop from
$3.4 billion to $1.08 billion. So in 2016–17, based on the analysis
that Treasury did last night, this state will receive $1.1 billion. At the same
time, GST receipts in the Northern Territory, a state with one-tenth the
population of Western Australia, will go from $2.5 billion to $3.3 billion.
That is a massive imbalance in terms of flows.
Point of Order
Mrs
M.H. ROBERTS : The Treasurer has referred to a graph that appears to
be an official document. We would like to be able to see that document. We call
upon him to table it.
Mr
T.R. BUSWELL : I am not sure this graph is an official document, but
I will —
Mr
W.J. Johnston : You said it was done by Treasury.
Mr
T.R. BUSWELL : The member did not let me finish; I am happy to table it. The
graph has figures on it that were provided to me last night by Treasury.
Questions without Notice Resumed
Mr
T.R. BUSWELL : The other element is what we receive in terms of
relativities. This line maps our relativity. Members will see that in five
years' time, Western Australia, with over 10 per cent of the nation's
population—we would reasonably pay at least 10 per cent of the nation's
GST—will receive less than two per cent of the national pool of GST
funds from the commonwealth.
Several members interjected.
Mr T.R. BUSWELL :
It is a shame. If I went back —
Several members interjected.
The
SPEAKER : Member for Cannington and member for Armadale, you are drowning
out the Treasurer. Treasurer, speak through the Chair and answer the question
now, thank you.
Mr
T.R. BUSWELL : On Treasury's estimates relativities drop to 16.2 per
cent. If we had received $3.4 billion each year for the next five years, and
there was no reduction in the absolute amount, we would have another $7.8 billion
available to spend on infrastructure and services in this state—$7.8
billion.
I want to touch on two other aspects
of last night's federal budget and GST more generally. The first aspect
relates to the GST review. The review was commissioned by the federal
Treasurer. The Commonwealth Grants Commission could not come up with a process
that everybody agreed to. It went out for years to determine an outcome. The outcome
was that it could not do anything and would refer all of the things identified
back to the Grants Commission, where the problem started. It made a very
significant recommendation in relation to Western Australia at recommendation 7.3.
Nick Greiner —
Mr
M. McGowan : John Brumby and Bruce Carter.
Mr
T.R. BUSWELL : Very good. I know the Leader of the Opposition met with them.
I think that report is okay, although it was polluted when the commonwealth
tried to use it to punish us for adjusting state royalties. However,
recommendation 7.3 basically recommends that we get a three per cent discount
on royalties we received, to take it out of the redistribution process. That is
not big, but it is $100 million a year to this state. Was that adopted by the
commonwealth in the budget last night? Absolutely not; and therein lies the
problem.
Further to that—I am nearly
finished, Mr Speaker—I read the documents again: when Kevin Rudd ran
for the prime ministership some time ago he promised this state $100 million per
year from Pluto and Gorgon petroleum resource rent tax receipts. That is $100
million a year. I asked Treasury to look through the documents, but it is not
there! That is another example of a commonwealth government that has no
interest in the financial wellbeing of this state.
Tabling of Papers
Mrs M.H. ROBERTS : The Treasurer
referred to two charts that were given to him by Treasury. He said he would
table them. I call upon him to do so.
[See papers 315 and 316.]
Mrs
M.H. Roberts : You got the wrong question!
Mr
T.R. BUSWELL : No. It is not the wrong question at all. It is exactly the
right question. In fact it could be the shortest answer I would ever give. But
I feel I should explain just a bit. The bit I look to when the federal budget
is handed down and when I strip through the fanfare and the glitz and all the
excitement, is the GST funding that flows to our state and importantly to other
states. The news, member —
Mr
P. Papalia : Do you really want to stick with that?
Mr
T.R. BUSWELL : I do, and that is exactly what I do and it is what everybody
in this place should do. I will explain why it is important, member for
Churchlands. If we look at total amounts of money that will flow to the state,
we are being decimated in terms of flows of GST revenues. When we look at our
relativities compared with the rest of Australia, we are being decimated in
terms of GST revenues. I have a chart. It is not laminated like the Leader of
the Opposition's chart; we are in austerity mode in government. I want
to show members this chart, because it highlights a very, very important point.
I am comparing here six years from 2011–12 through to 2016–17.
The chart has blue lines and red lines. The blue lines are the total amounts
that flow to the state of Western Australia. The red lines—I thought I
would choose a state similar in size and population and activity!—represent
the Northern Territory. I should point out to the house that this chart is
based on Treasury's analysis of the figures provided by the
commonwealth in the budget last night, because Treasury historically is much
more accurate in forecasting what happens to GST flows in an absolute sense and
to revenues. What this chart shows is that over the six years of this period,
Western Australia's GST—the blue bar—will drop from
$3.4 billion to $1.08 billion. So in 2016–17, based on the analysis
that Treasury did last night, this state will receive $1.1 billion. At the same
time, GST receipts in the Northern Territory, a state with one-tenth the
population of Western Australia, will go from $2.5 billion to $3.3 billion.
That is a massive imbalance in terms of flows.
Point of Order
Mrs
M.H. ROBERTS : The Treasurer has referred to a graph that appears to
be an official document. We would like to be able to see that document. We call
upon him to table it.
Mr
T.R. BUSWELL : I am not sure this graph is an official document, but
I will —
Mr
W.J. Johnston : You said it was done by Treasury.
Mr
T.R. BUSWELL : The member did not let me finish; I am happy to table it. The
graph has figures on it that were provided to me last night by Treasury.
Questions without Notice Resumed
Mr
T.R. BUSWELL : The other element is what we receive in terms of
relativities. This line maps our relativity. Members will see that in five
years' time, Western Australia, with over 10 per cent of the nation's
population—we would reasonably pay at least 10 per cent of the nation's
GST—will receive less than two per cent of the national pool of GST
funds from the commonwealth.
Several members interjected.
Mr T.R. BUSWELL :
It is a shame. If I went back —
Several members interjected.
The
SPEAKER : Member for Cannington and member for Armadale, you are drowning
out the Treasurer. Treasurer, speak through the Chair and answer the question
now, thank you.
Mr
T.R. BUSWELL : On Treasury's estimates relativities drop to 16.2 per
cent. If we had received $3.4 billion each year for the next five years, and
there was no reduction in the absolute amount, we would have another $7.8 billion
available to spend on infrastructure and services in this state—$7.8
billion.
I want to touch on two other aspects
of last night's federal budget and GST more generally. The first aspect
relates to the GST review. The review was commissioned by the federal
Treasurer. The Commonwealth Grants Commission could not come up with a process
that everybody agreed to. It went out for years to determine an outcome. The outcome
was that it could not do anything and would refer all of the things identified
back to the Grants Commission, where the problem started. It made a very
significant recommendation in relation to Western Australia at recommendation 7.3.
Nick Greiner —
Mr
M. McGowan : John Brumby and Bruce Carter.
Mr
T.R. BUSWELL : Very good. I know the Leader of the Opposition met with them.
I think that report is okay, although it was polluted when the commonwealth
tried to use it to punish us for adjusting state royalties. However,
recommendation 7.3 basically recommends that we get a three per cent discount
on royalties we received, to take it out of the redistribution process. That is
not big, but it is $100 million a year to this state. Was that adopted by the
commonwealth in the budget last night? Absolutely not; and therein lies the
problem.
Further to that—I am nearly
finished, Mr Speaker—I read the documents again: when Kevin Rudd ran
for the prime ministership some time ago he promised this state $100 million per
year from Pluto and Gorgon petroleum resource rent tax receipts. That is $100
million a year. I asked Treasury to look through the documents, but it is not
there! That is another example of a commonwealth government that has no
interest in the financial wellbeing of this state.
Tabling of Papers
Mrs M.H. ROBERTS : The Treasurer
referred to two charts that were given to him by Treasury. He said he would
table them. I call upon him to do so.
[See papers 315 and 316.]
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